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How to become a more relaxed and profitable trader

by , 12 May 2015

When you trade, the risks are high and it's easy to understand why many traders find the process stressful.

But becoming highly stressed out and a bundle of nerves is actually detrimental to your trading.

So what can you do to make your trading journey more relaxed?

Read on to find out…

The emotional rollercoaster ride of trading

Trading can put your emotions through the mill.

A winning trade leaves you ecstatic and full of joy. A losing trade leaves you down. And whilst putting on a trade, you might get an adrenaline rush and sweaty palms.

But it’s important you minimise the stress that accompanies your trading. It comes down to finding out the trigger points of your stress and dealing with them.

If you can do this, you’re trading confidence will grow and so should your profits.

The pressures of trading

Dreams of profits may have lured you into trading in the first place. Yes, trading can make you money. But you can also lose money.

The aspiration to make extra cash can result in you having unrealistic expectations of what your trading may produce.

It’s unlikely that in a couple of months you’ll resign from your job and be cruising around the world.

Whilst it’s great to have dreams, focusing too much on how much money you can make just puts additional pressure on you. And this pressure results in stress.

What you need to do is approach trading with a realistic outcome. View it as a way to generate some extra rands. Of course, there are traders who make a living out of it. But don’t focus on this, especially when you first start trading.

So the key is to focus on trading as an additional income stream. Any cash you make to begin with should go back into your trading pot or spent on the occasional treat.

When you approach trading in a relaxed way, you’re in a better position to learn and improve your trading strategy, Richard Hill in Forex Round-Up explains.

The advantages of taking a relaxed approach to trading

When you’re relaxed, you’ll trade better too. You’ll make informed decisions based on your strategy. And this means fewer mistakes too.

By approaching trading in a structured way via your trading plan, you can control your risk better too.

Having realistic objectives from what you can gain from trading will help you become a better trader. Enjoy trading. Don’t panic or stress about it.

So there you have it. How to become a more relaxed and profitable trader.

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How to become a more relaxed and profitable trader
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